US EV Battery Market 2024-2030

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    US EV BATTERY MARKET

     

    KEY FINDINGS

    • Anticipated sales growth of electric vehicles and stringent emissions regulations are expected to drive a remarkable Compound Annual Growth Rate (CAGR) of xx % in the US EV battery market.
    • The US EV Battery market is rapidly expanding, propelled by a combination of policy measures, consumer demand, and advancements in technology.
    • Continuous innovation is powering the US EV battery market, with emerging battery chemistries like nickel-rich and lithium iron phosphate (LFP) providing enhanced energy density, quicker charging capabilities, and improved safety features.
    • Research and development endeavours are concentrated on lowering battery production costs through the use of inventive materials, more efficient processes, and achieving economies of scale.
    • While recycling is crucial for reducing reliance on resources and lessening environmental impact, the US currently lacks an effective infrastructure for this purpose.
    • Challenges in US battery production costs arise from factors like labour expenses, land availability, and energy prices, underscoring the importance of achieving cost competitiveness to make electric vehicles more affordable and widely accessible.
    • Extracting and processing critical minerals for batteries can lead to adverse environmental effects such as water pollution, deforestation, and greenhouse gas emissions.
    • Analysts project a staggering growth in the US EV battery market to reach $xx billion by 2030, driven by increasing electric vehicle sales, ambitious government targets, and declining battery costs at a CAGR exceeding xx%.
    • Anticipate the development of a robust recycling infrastructure that retrieves valuable materials from used batteries, minimizing environmental impact.
    • Projections indicate a substantial surge in demand for lithium by 400%, cobalt by 270%, and nickel by 170% by 2030, signalling significant investment prospects in mining and refining within the US.
    • The electric vehicle battery industry is expected to generate over 1 million jobs in the US by 2030, presenting substantial economic opportunities and societal advantages.

     

    INTRODUCTION

    The number of electric vehicles (EVs) has steadily increased over the last several decades. According to projections, more than 125 million electric vehicles will be on the road worldwide by 2030. The lithium-ion (Li-ion) battery, which provides the needed energy storage, lies at the core of these sophisticated vehicles.

     

    Currently, batteries are the main obstacle to EV’s wider adoption. The development of better, cheaper, and higher capacity batteries will extend vehicles autonomy, and the users view them as a true alternative to the internal combustion engine vehicles

     

    Waldemar Jungner introduced the nickel-cadmium battery, which improved storage capacity significantly but had certain downsides, including a voltage suppression issue known as the memory effect that develops as the battery ages.

     

    Li-ion batteries are energy storage devices that rely on insertion processes between both electrodes, with lithium ions acting as the charge carrier. The Li-ion battery family encompasses a variety of cell chemistries, as defined by this wide definition. A negative electrode is used in most Li-ion batteries.

     

    infographic: US EV Battery Market, US EV Battery Market Size, US EV Battery Market Trends, US EV Battery Market Forecast, US EV Battery Market Risks, US EV Battery Market Report, US EV Battery Market Share

     

    The battery pack is the costliest component in any electric vehicle. For example, the Nissan LEAF’s lithium-ion batteries were initially a third of the vehicle’s total cost. Another fact that reinforces the battery cost reduction trend is building a “Gigafactory” in order to cut down on the production costs and raise the manufacturing of batteries.

     

    There are therefore many choices of materials for the positive and negative electrode materials, the electrolyte, and the separator. The technological limitations of the various materials are driven by their function within the EV usage and battery energy system of operation under the BMS of the specific EV class.

     

    US EV BATTERY MARKET DYNAMICS

    The US EV battery market is poised for substantial growth, with an estimated increase of 15-20% in 2023 compared to 2021, indicating a significant uptick in sales. This follows the remarkable expansion observed in 2021, where the market nearly doubled in size. The availability of a diverse range of EV models at various price points has attracted more buyers to opt for electric vehicles, consequently driving up the demand for batteries.

     

    In 2022, Kelley Blue Book reported approximately 807,180 electric vehicles sold in the US, marking an impressive 83% increase from the previous year. Projections for 2023 vary, but most sources anticipate another robust year, with sales expected to range between 1.2 million and 1.53 million units. This suggests a potential growth of 49% to 89% compared to 2022.

     

    Tesla maintained its dominance in the US EV market in 2022, capturing around 40% of the market share. However, other manufacturers such as Ford, Chevrolet, and Hyundai are making significant strides with their expanding EV portfolios. In 2023, it is estimated that Tesla’s market share has slightly decreased to approximately 30%, as it faces growing competition from both established automakers and new players entering the market.

     

    In 2022, the Chevrolet Bolt experienced a noteworthy surge in sales compared to Q2 2021 data, securing its position as the fifth best-selling electric vehicle (EV) in the US, with an impressive 34,774 units sold. However, the narrative took a different turn in 2023. As of October, the Bolt’s sales have shown signs of decline, with estimated figures suggesting a downturn compared to the robust performance seen in 2022. Factors contributing to this shift could include potential production limitations or increased competition within its price range.

     

     

     

    infographic: US EV Battery Market, US EV Battery Market Size, US EV Battery Market Trends, US EV Battery Market Forecast, US EV Battery Market Risks, US EV Battery Market Report, US EV Battery Market Share

     

    On the other hand, the Mustang Mach-E continued its remarkable momentum throughout 2022, solidifying its standing as the third best-selling EV in the US with an impressive 73,734 units sold. This ongoing success underscores its ability to challenge Tesla’s dominance in the electric vehicle market. As of 2023, the Mach-E appears to sustain its robust performance, potentially maintaining its third-place position. While final sales figures for the year are still pending, it remains a popular choice among consumers, credited to its sleek design, high performance, and the growing support of its charging network.

     

    The widespread success of electric vehicles has the potential to replace fossil hydrocarbons with low-carbon electricity as the primary energy source for transportation. However, the current limitation lies in battery technology, hindering electric vehicles from providing an energy service comparable to traditional hydrocarbon fuel vehicles.

     

    To achieve a successful transition to electric vehicles, there is a need for new battery technologies that offer higher specific energy, reduced costs, and longer calendar and cycle lifetimes. These advancements are crucial for enabling electric vehicles to match the performance of vehicles powered by hydrocarbon fuels.

     

    Industries such as electric vehicles, electronic gadgets, and battery energy storage for renewable energy heavily rely on breakthroughs in battery technologies to drive growth. The global shift towards electric mobility is already underway, with significant adoption, particularly in the US EV Battery market.

     

    Numerous battery manufacturers play a pivotal role in assembling battery packs for vehicles sold in the United States. Notably, Tesla has emerged as a leader, with more vehicles in the country being equipped with Tesla battery packs than those from any other assembler. While Tesla initially sourced cells from Japan through a partnership with Panasonic, its Gigafactory in Nevada now produces cells in collaboration with Panasonic for use in Tesla vehicles.

     

    infographic: US EV Battery Market, US EV Battery Market Size, US EV Battery Market Trends, US EV Battery Market Forecast, US EV Battery Market Risks, US EV Battery Market Report, US EV Battery Market Share

     

     

     

    In 2017, LG Chem batteries ranked as the second-most common brand among batteries used in vehicles sold in the United States. This indicates the diverse landscape of battery manufacturers contributing to the growth of the electric vehicle market. The industry is evolving rapidly, with ongoing developments aimed at enhancing battery technology to further promote the widespread adoption of electric vehicles. 

     

    Panasonic Corp. is looking for a location to build a new facility in the United States to provide Tesla Inc. and other electric vehicle makers with next-generation lithium-ion batteries.

     

    The multibillion-dollar facility is being considered for various locations, including one in Oklahoma and another in Kansas, according to the veteran Tesla supplier.

     

    Despite the fact that the plans are still in the early stages, Panasonic is taking a big stride forward. Panasonic has been slower to ramp up than rival suppliers LG Energy Solution of South Korea and Contemporary Amperex Technology Co. of China, despite significant demand for batteries from Tesla.

     

    Panasonic intends to manufacture a newly developed, larger, and more powerful battery at the new US facility. At the new factory, Panasonic may construct lines for other batteries, as well.

     

    Our Next Energy (ONE) of Michigan stated it will use the BMW-led funding to advance R&D and develop a production facility in the United States.

     

    Four automakers have inked contracts with ONE, and the company has a five-year, 25GWh energy storage pipeline in the works.

     

     It stated that the latest round of finance will assist it in starting the site selection process for its first battery manufacturing in the United States.

     

    BMW Ventures was impressed by ONE’s basic principles of tripling range, lowering battery costs, and establishing a local supply chain. 

     

    The opening of ONE’s battery facility in the United States is a significant step forward for the larger electric vehicle value chain, and ONE has the ability to completely revolutionise the ecosystem.

     

    According to ONE, the company makes lithium-ferrophosphate batteries, which do not require earth-rare cobalt. The Aries and the bigger Gemini, which was utilised in the Tesla demonstration, are the two proof-of-concept battery versions now available.

     

    US EV BATTERY MARKET RECENT DEVELOPMENTS

    S No Overview of Development Development Detailing Region of Development Possible Future Outcomes
    1 Sourcing of Li for EV Batteries General Motors has started its way into sourcing Lithium Metal from the US through a Public Private Partnership based operation. United States of America – Detroit Low-Cost Lithium Procurement for its future battery grade lithium hydroxide and carbonate requirements.
    2 Samsung SDI’s initiative towards Battery Cell Plant South Korea’s Samsung SDI Co may build a battery cell plant in the United States to support the auto industry’s shift to electrification Rivian Supply and Stellantis Supply Requirements in the USA. Investment of 3 trillion US Dollars to have better prospects invested on Rivian and Stellantis as JV
    3 Mercedes-Benz to build eight battery factories in push to become electric-only automaker by 2030 In the U.S., Mercedes-Benz has a vehicle assembly plant near Tuscaloosa, Alabama. It started construction on a battery plant near there in 2018 and is close to ramping up production United States of America To change into an Electric only Automotive Manufacturing Unit in the USA.
    4 Sila Nano Battery Establishment into new composites The US based, Silicon Valley battery materials start-up that raised $590 million earlier this year, to help it improve its next generation of batteries. Silicon Valley – USA Sila Nano is helping Mercedes increase energy density by using silicon-carbon composite in the anode, which should boost range and allow for shorter charging times.
    5 US Battery Recycling Capability increase as an initiative towards LCA of EVs  

    Tesla co-founders battery recycling start-up Redwood Materials has focused upon closing the loop of LCA for EV Batteries in the country.

    United States of America To help in better establishment of battery recycling procedures alongside integrations within the Tesla Gigafactory

     

     

    US EV BATTERY MARKET SEGMENTATION

     

    The US EV Battery Market can be segmented into the following categories for further analysis.

     

    US EV Battery Market By Battery Type

    • Lithium Nickel Manganese Cobalt (Li-NMC)
    • Lithium Iron Phosphate (LFP)
    • Others

     

    US EV Battery Market By Vehicle Type

    • Passenger Vehicle
    • Two-Wheeler
    • Commercial Vehicle
    • Others

     

    US EV Battery Market By Battery Capacity (kWh)

    • <50
    • 50-100
    • >100

     

    RECENT TECHNOLOGICAL TRENDS IN THE US EV BATTERY MARKET

     

    infographic: US EV Battery Market, US EV Battery Market Size, US EV Battery Market Trends, US EV Battery Market Forecast, US EV Battery Market Risks, US EV Battery Market Report, US EV Battery Market Share

     

    Ambri, an energy storage company based in Massachusetts, US. have raised close to $400 million in total funding, demonstrating continued investor confidence in their technology. The company has made significant progress in developing and prototyping its liquid metal battery technology. They successfully launched a demonstration project in Massachusetts in 2022 and are collaborating with various partners on large-scale deployments.

     

    While cost reduction remains a challenge, Ambri’s technology offers potential advantages over lithium-ion batteries in terms of longevity (4-24 hours energy storage) and safety. Initial pilot projects are showcasing the feasibility and benefits of their system. -October 2023

     

    A partnership between HOBI International and Retriev Technologies remains an active and ongoing collaboration since it was announced in June 2021. Both companies have been working together to build and expand their operations.

     

    Retriev’s recycling facility in Ohio continues to process large-format EV batteries using their patented hydrometallurgical process, recovering critical materials like lithium, cobalt, and nickel. They have reportedly processed over 30 million pounds of lithium batteries to date.

     

    HOBI, with its vast network of facilities and client relationships, focuses on collecting and managing discarded EV batteries across North America. They utilize their experience in IT asset management and demanufacturing to provide comprehensive solutions for clients looking to responsibly dispose of their batteries.

     

    The partnership seems to be yielding positive results. It promotes a circular economy in the battery industry by recovering valuable materials and reducing reliance on virgin resources. This aligns with the Biden administration’s focus on sustainable practices and domestic battery production. -October 2023

     

    Tesla confirmed the adoption of LFP batteries in some standard range models, driven by cost advantages and resource availability compared to traditional NCA batteries.

     

    However, claims about the 400-mile range and 1 million-mile lifespan for LFP batteries in Tesla vehicles lack concrete evidence and should be evaluated critically. – 2023

     

    General Motors’ Ultium is now powering several GM electric vehicles, including the Chevrolet Silverado EV, GMC Hummer EV, and Cadillac Lyriq. The modular design allows for flexibility in battery pack size and vehicle configurations, enabling a range of options for different price points and needs.

     

    While claims of a 400-mile range and 0-60 mph acceleration in 3 seconds are achievable with certain Ultium-powered vehicles, it’s important to consider specific model variations and driving conditions. – 2023 [KH2] 

     

    There’s a notable rise in new startups and smaller companies entering the US battery market. While they may initially lag behind established players in resources and scale, they often bring fresh perspectives, agility, and innovative technologies to the table.

     

    The limitations of current Li-ion technology are driving R&D into advanced versions. This includes improvements in energy density, cycle life, charging speed, and safety. Examples include lithium-metal batteries using lithium-metal anodes for higher capacity and silicon-based anodes for faster charging.

     

    Replacing the liquid electrolyte with a solid-state battery offers increased safety, stability, and potentially higher energy density. However, challenges remain in cost and scalability. The decoupled energy and power capabilities of flow batteries make them ideal for large-scale grid storage and renewable energy integration. Redox flow batteries using sustainable materials like vanadium offer promising environmental benefits. 

     

    Companies are developing innovative processes to recover valuable materials like cobalt, nickel, and lithium from spent batteries, reducing dependency on virgin resources and environmental impact. Closed-loop battery ecosystems are becoming increasingly important, minimizing waste and promoting sustainability throughout the battery lifecycle.

     

     

    infographic: US EV Battery Market, US EV Battery Market Size, US EV Battery Market Trends, US EV Battery Market Forecast, US EV Battery Market Risks, US EV Battery Market Report, US EV Battery Market Share

     

    GROWTH OF EV BATTERY IN FUTURE

    In the United States, the unfolding narrative of EV batteries paints a picture of ingenuity, policy shifts, economic considerations, and environmental consciousness. This piece explores the multifaceted factors propelling the growth of US EV batteries and the influences shaping their journey in the years ahead.

     

    The electric vehicle battery market in the US is witnessing an unprecedented surge, highlighted by an impressive 250% Year-over-Year surge in EV sales during the second quarter of 2021. This robust growth signifies a noteworthy shift in consumer preferences, reflecting a heightened awareness of the environmental impact associated with traditional internal combustion engines.

     

    The heartbeat of the EV battery market is innovation, propelling advancements that redefine efficiency, performance, and sustainability. Emerging battery chemistries, such as nickel-rich and lithium iron phosphate (LFP), are taking the lead. These innovations promise heightened energy density, quicker charging times, and improved safety features, setting the stage for a new era in electric mobility.

     

    Forecasts indicating a surge in demand for crucial battery minerals – lithium, cobalt, and nickel – by 2030 underscore significant investment opportunities in mining and refining within the US. This demand spike underscores the pivotal role these minerals play in the sustainable future of electric mobility.

     

    the future growth of the US EV battery market is a narrative interwoven with technological prowess, policy evolution, economic considerations, and environmental stewardship. As electric vehicles become an integral part of the transportation ecosystem, the role of advanced, efficient, and sustainable batteries becomes pivotal.

     

    GOVERNMENT REGULATIONS FOR EV BATTERIES

    Several states, notably California, have embraced Zero Emission Vehicle (ZEV) mandates compelling automakers to manufacture and sell a specific percentage of zero-emission vehicles, including electric ones. This policy acts as a catalyst for both automakers and consumers, driving the shift toward electric vehicles and indirectly influencing the demand for advanced EV batteries.

     

    Regulations addressing environmental concerns and setting emission standards, especially those targeting reduced greenhouse gas emissions, indirectly steer the growth of the EV battery market. Stringent emission standards motivate automakers to invest in electric vehicles and the associated battery technologies to meet regulatory compliance.

     

    Initiatives promoting clean energy and sustainable transportation contribute significantly to the expansion of the EV battery industry. These initiatives often encompass goals of reducing reliance on fossil fuels and encouraging the use of renewable energy sources to power electric vehicles, aligning with the environmental advantages of EVs and their batteries.

     

    Government collaboration with industry stakeholders, including automakers and battery manufacturers, plays a vital role in establishing standards for electric vehicles. These collaborations ensure that the industry develops in a regulated and standardized manner, prioritizing the safety, reliability, and interoperability of EV batteries.

     

    US EV BATTERY MARKET COMPETITIVE LANDSCAPE

    While Samsung SDI experienced steady growth in 2022, its performance fell short of the exceptional figures seen in Q2 2021. Although the Li-ion battery segment’s revenue growth remained positive, it moderated compared to the robust numbers of 2021. The US EV battery market is fiercely competitive, with LG Chem and CATL making significant advancements. To stay ahead, Samsung SDI is actively investing in research and development for next-generation battery technologies, particularly solid-state batteries.

     

    SK Innovation’s battery business, now operating as SK On, sustained growth in both 2022 and 2023. In Q3 2023, reported sales amounted to 3.3 trillion KRW ($2.5 billion), reflecting a notable increase from the previous quarter. Despite improvements in the operating margin from previously negative figures, SK On has yet to achieve consistent profitability. Factors contributing to this include substantial upfront investments in new factories and intense global competition within the battery market.

     

    Tesla, on the other hand, maintained a robust financial performance in subsequent quarters, surpassing its earlier Q2 2021 figures. Projections indicate that total revenues in 2023 will surpass $80 billion, a significant increase from the 2021 figure mentioned. With gross margins consistently exceeding 25% and automotive margins climbing to around 30% in Q3 2023, Tesla has demonstrated financial strength. Operating margins have also seen substantial improvement, reaching over 15% in the same quarter. Tesla’s positive free cash flow further reinforces its financial stability.

     

    BASF has consistently displayed robust financial performance, sustaining growth throughout 2022 and 2023. Projections indicate that sales for 2023 will reach approximately €77 billion, surpassing the previously mentioned figure for 2021. Notably, profitability metrics have shown significant improvement, with an EBIT margin exceeding 8% in the first half of 2023. The company attributes its success to ongoing investments in innovation and strategic partnerships.

     

    In contrast, Panasonic’s performance post-Q2 2021 has been varied, marked by fluctuations in both sales and profitability across different segments. The overall sales projection for 2023 is expected to be slightly lower than that of 2021. Despite variations in operating profit margins, the company has maintained positive figures. Panasonic is actively engaged in restructuring efforts and forming strategic partnerships to enhance efficiency and foster future growth.

     

    There has been constant technology battery adoption and automated control system implementation within the US EV battery market. The major stakeholders are involved in implementing new technology strategies to have a better and safer ride for the customers.

     

    Nissan Motor Battery Technologies has been implementing various technological implementations and integrations into existence considering lithium-ion batteries have better energy densities than lead-acid or nickel-metal hydride batteries, the battery size may be reduced while maintaining the same storage capacity.

     

    Nissan’s Lithium-ion battery technology employs materials that allow for a higher storage density of lithium ions. As a result, the journey distance increases.

     

    One battery module was built with a 4-cell arrangement in the initial LEAF (fitted with a 24-kWh battery pack), with a total of 24 modules on-board the car. Each battery module in the second-generation LEAF (fitted with a 40-kWh battery pack) is built with an 8-cell design as standard, improving filling efficiency. Storage was preserved with this new battery pack design.

     

    Samsung SDI is a leading provider of EV battery solutions. The latest prismatic cell technology of Li Ion battery pack in the form of small and stackable form allows for easy cell flexibility and is suited for a variety of setups.

     

    Multiple modules are connected in series or parallel with sensors and controllers, including battery management systems and thermal management systems, to form a battery pack, which is then enclosed in a housing structure as a finished battery product.

     

    IMPACT OF EV BATTERIES ON THE US EV BATTERY MARKET

    Electric vehicles (EVs) utilizing batteries manufactured in the United States significantly decrease carbon dioxide emissions compared to traditional gas-powered vehicles. This not only results in cleaner air but also contributes to public health improvement and aids in the global effort to combat climate change.

     

    The production of batteries domestically holds the potential to alleviate the environmental harm associated with mining and transporting batteries. Implementing responsible practices and regulations can lead to a reduction in resource extraction from environmentally sensitive regions and promote more efficient supply chain management.

     

    The development and implementation of battery recycling technologies that are both efficient and environmentally friendly are of utmost importance. Prioritizing closed-loop systems that minimize energy consumption and waste generation while maximizing resource recovery is crucial for sustainable practices.

     

    The reduction in emissions from EVs powered by batteries made in the US contributes to cleaner air, particularly beneficial for communities disproportionately affected by air pollution. This, in turn, leads to a decrease in respiratory illnesses, an enhanced quality of life, and a reduction in societal healthcare costs.

     

    To democratize access to electric vehicles, it is essential to ensure the affordability and accessibility of charging infrastructure in both urban and rural areas. This approach can empower marginalized communities, reduce dependence on public transportation, and open up new economic opportunities. 

     

    US EV BATTERY MARKET COMPANIES PROFILED

     

    REPORT WILL ANSWER FOLLOWING QUESTIONS

    1. US EV Battery Market Size and Forecast, by region, by application
    2. Average B-2-B price for US EV Battery Market, by region, per user
    3. Technology trends and related opportunities for new US EV Battery Market tech suppliers
    4. US EV Battery Market share of leading vendors, by region,[KH3] 
    5. How is the electric vehicle industry evolving, and what ongoing developments are aimed at enhancing battery technology to promote widespread adoption?
    6. What is the current global shift towards electric mobility, and how does the US market contribute to this trend?
    7. What are the potential advantages of replacing the liquid electrolyte with solid-state batteries, and what challenges do companies face in terms of cost and scalability in adopting this technology?
    8. What trends are observed in the US battery market regarding the entry of new startups and smaller companies, and what advantages do these entities bring to the industry?
    9. In what ways do economic considerations play a role in the unfolding narrative of EV batteries in the United States?
    10. What technological advancements and automated control system implementations have been observed in the US EV battery market, and how are major stakeholders leveraging these strategies for a safer and better ride experience?
    11. What potential environmental benefits are associated with the domestic production of batteries for electric vehicles, and how can responsible practices and regulations mitigate environmental harm related to mining and transportation?
    Sl no Topic
    1 Market Segmentation
    2 Executive Summary
    3 Introduction
    4 Key Predictions for the Client
    5 Average B2B Price Of EV Batteries In US, By Vehicle Type
    6 Platforms of top OEMs and battery suppliers for each platform
    7 OEM Stance on EV’s
    8 Impact of Global DC Fast Charging Network on the Battery Market
    9 Cost breakdown of EV Battery by sub-components and average profit margin
    10 Supply chain of EV Battery
    11 Electric Vehicle Sales in US in the last 5 Years (2017-2022)
    12 Incentives and Subsidies for Purchasing an EV
    13 EV Production in US and its Impact on EV Battery Market
    14 Developments in Solid State Batteries
    15 Evolution of Li ion battery chemistry for passenger cars in 2012-2023
    16 Evolution of Li ion battery chemistry for commercial vehicles in 2012-2023
    17 Decrease in Battery Price and Impact on EV Market
    18 Upcoming Vehicles By Region With Battery Pack Size
    19 New Product Development in past 2 years
    20 Market Size ,Dynamics and Forecast By Battery Type, 2024-2030
    21 Market Size ,Dynamics and Forecast By Battery Capacity, 2024-2030
    22 Market Size ,Dynamics and Forecast By Vehicle Type, 2024-2030
    23 Competitive Landscape
    24 OEM-Supplier Relationship in EV Battery Market
    25 Company Profiles
    26 Mergers and Acquisitions in past 5 years
    27 Suppliers` Raw Material Sourcing Strategy for EV Battery
    28 Unmet Needs and Market Opportunity for Suppliers
    29 Conclusion
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